GBP/USD tries to stabilise near monthly R1

The British Pound keeps on grinding lower and may possibly close a fifth day in a row in red. Still, for now the price seems to be well-supported by the monthly R1, but this level is likely to be breached in the next few days, thereby paving the way towards 1.6523/1.6470—2011 highs, monthly PP and the up-trend line. A rally from there will be more justified.

Similarly to the situation observed in the most traded currency pair, EUR/USD, here the traders are also reluctant to close old and to open new positions. The distribution between the bullish and bearish market participants is exactly the same as yesterday—40% and 60% respectively.